Inter-organizational perspective Flashcards
Explain the drivers and emergent nature of decision (Inter-organization perspective)
External drivers (opputnities, threats in the market) and emergent nature of decision. (incremental)
What type of theory does the inter-organization perspective reflect?
Organizational theory: leveraging organizational relationships
What assumption does the IO-perspective take?
- the firm should move into the position of power and influence
- Access to resources happens through relationship bulding
- Business transactions take place wihtin long-term well-establshed relationships
Mention relevant authors to the IO-perspective
Johanson J, Mattsson (‘“A network appraoch” - key for the IO perspective. Interview with industrial supploies about domestic customers) and Chetty S, Holm DB. 2000 (Critique)
What is a network?
A network is a set of two or more connected relationships, in which each exchange relation is between business firms
What are firms activities?
A firm’s activities is a cumulative process in which relationships are continually established, maintained, developed, and broken in order to satisfy both short-tem economic return and create positions in the network for long-term survival
How should firms internationlize according to the IE-perspective? Explain the model os archetypocal positions in a global network,
Internationalization of the firm is establishment and development of positions in relation to counterparts in foreign networks.
Internationalization of the firm is increase in the number and strength of relationships between different parts of global production networks
Look at the model. The early starter, the late starter, the lonely international and the international among others.
Production networks: Relationships between those firms whose activities are linked to a specific product area
What happens if the firm enters a market with no relevant network position?
Thent will suffer from the liability of outsidership and foreignness (unfamiliarity, discrimination, relational hazards), and foreignness complicates the process of becoming an insider.
How are relationships made?
developed through a process of reciprocal experiential learning
Give examples of Tesla making use of the IO approach?
Long term partnerships with Panasonic. Also Daimler and Toyota, giving Tesla a power position to influence. . It also give Tesla acess to resources and knowlegde. (experiental learning).
Having both legal, knowlegde and technical ties with the partners strengthens the relationship with the partners.
Why does the IO approach not fit on Tesla?
We dont see direct examples of TEsla using partnerships as key to IP.
Tesla has valueable transaction-specific knowlegde which can be stupid to share with too many partners. -> instead equity mode and only partnerships where it makes sense.
mention differnt ways to invest in a relationship
- Long-term contracts
- Special credit-arrangements (Athlon car leasing)
- Knowlegde sharing
- Product and process innovation
What is a broker/bridger
Broker: In the middle of a network
Bride: Connecting two networks. The most powerfull
What is the early starter, the late starter, the lonely internaitonal, and the international among others?
- Draw also
Early: . A firm has little knowledge about foreign markets and cannot count on utilising domestic contacts. Hereby make relations to get market acess.
Lonely: Make international penetration by increasing commitment of resources
Internaitonal among others: nternational penetration by increasing commitment of resources
Late: International integration: coordination of other actors’ activities in order to tighten international activities together
How would a network firm be structured?
Country A: HQ
Country B: Production subsidiary
Country C: Sales subsidiary:
Country D: Agent
